On 14th May, 2014 the London Silver Market Fixing (the ‘Company’) Limited announced that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014. Until then DB, HSBC and the Bank of Nova Scotia will remain members of the Company and the Company will administer the London Silver Fixing and continue to liase with the FCA and other stakeholders.
The LBMA’s decision to stop London Silver Market fixing will bring in a lot of hurdles for silver importers in India. Across the world, LBMA prices have always been considered as benchmark prices. The biggest issue will be that there won’t be any benchmark price to look upon. Transparent fair prices will be required for the market to sustain and LBMA will have to choose other alternatives for fixing Silver market prices.